Needham analysts wrote today that they downgraded NuVasive (Nasdaq:NUVA) stock ahead of a potentially slow start to 2023.
Analysts Davis Saxon, Mike Matson and Joseph Conway contributed to the Needham report. They switched NuVasive from a “Buy” to a “Hold” rating.
The analysts explained their belief that NuVasive’s key launches “could begin to slow” in 2023. Compounded by an increase in competition, challenging NuVasive’s market leadership position, the stock may struggle.
Another wrinkle comes in the form of a $450 million debt refinancing. The analysts said it could result in a headwind greater than 8¢ to the company’s 2023 EPS.
“Given these points, we believe the 2023 consensus estimate leaves little room for upside, which is needed to drive multiple expansion, in our view,” the analysts wrote. “While valuation appears attractive, relative to our broader coverage we believe…